From Reuters this afternoon - a realistic spin of the data
Insmed Inc's shares plunged after its experimental drug to treat a form of bacterial lung infection failed the main goal of a trial, but the stock clawed back much of its early losses after analysts said positive secondary data was more relevant.
Insmed's shares recover as analysts highlight positive trial data
"Insmed's shares were down 12 percent in afternoon trading, recovering from a 34 percent plunge in premarket trading.
The company said the inhaled antibiotic, Arikayce, failed to reduce bacterial density, a measure of change in infection, significantly enough in patients with treatment-resistant nontuberculous mycobacterial(NTM) lung infections.
But the sputum cultures of 11 of the 44 patients given the drug did not show bacteria, meeting the mid-stage trial's secondary goal of culture conversion, Insmed said.
Analysts said the secondary data was a more relevant measure of the drug's efficacy and would be more meaningful to the U.S. Food and Drug Administration and doctors.
"What today's news does is eliminate any debate about the clinical meaningfulness of the data," said Andrew Fein, an analyst with HC Wainwright & Co.
"The initial belief was, given the short duration of the study, that showing culture conversion would be impossible."
The culture conversions were seen even after the study was extended beyond its scheduled 84 days, said Renu Gupta, Insmed's chief medical officer.
NTM lung infections are caused by a type of bacteria found in soil as well as water and are characterized by cough, fever and blood in the mucus. There is no approved treatment for these infections."
$500M in the US alone is estimated when approved (from Andrew Fein)